Ravsten Company uses a job-order costing system. On January 1, the beginning of the current year, the company's inventory bal were as follows: Raw materials Work in process Finished goods $16,800 $10,800 $31,600 The company applies overhead cost to jobs on the basis of machine-hours. For the current year, the company estimated that it wo work 36,000 machine-hours and incur $155,880 in manufacturing overhead cost. The following transactions were recorded for th year a. Raw materials were purchased on account $204,000. b. Raw materials were requisitioned for use in production: $194,000 (80% direct and 20% indirect). c. The following costs were incurred for employee services Direct labour Indirect labour Sales commissions Administrative salaries $164,000 $ 27,800 $ 36,800 $ 81,600 d. Heat, power, and water costs were incurred in the factory $42,800. e Prepaid insurance expired during the year: $10,800 (90% relates to factory operations, and 10% relates to selling and administrati activities) f. Advertising costs were incurred, $50,800 g. Depreciation was recorded for the year $60,800 (85% relates to factory operations, and 15% relates to selling and administrative activities) h. Manufacturing overhead cost was applied to production. The company recorded 40,000 machine-hours for the year. 1. Goods that cost $489,600 to manufacture according to their job cost sheets were transferred to the finished goods warehouse J. Sales for the year totalled $728,000 and were all on account. The total cost to manufacture these goods according to their job cos sheets was $483.000 Required: 1. Prepare journal entries to record the transactions given above (Do not round intermediate calculations. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 2. Prepare T-accounts for inventories, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from y to these T-accounts (don't forget to enter the opening balances in your inventory accounts). Compute an ending b account. Raw Materials Beg Bal a End Bal 0 Manufacturing Overhead Beg Bal End Bal 0 Work in Process Cost of Goods Sold Beg Bal Beg Bal End. Bal 0 Beg Bal Finished Goods End Bal 0 3-b. Prepare a journal entry to properly dispose of any balance in the Manufacturing Overhead account. (Round you and final answers to 2 decimal places. If no entry is required for a transaction/event, select "No journal entry req account field.) View transaction list Journal entry worksheet A Record the entry to properly dispose of any balance in the Manufacturing Overhead account. Note: Enter debits before credits. Event 1 General Journal Debit Credit 4. Prepare an income statement for the year. (Do not round intermediate calculations and roun whole dollar amount.) RAVSTEN COMPANY Income Statement For the Year Ended December 31 Sales Gross profit Selling and administrative expenses Sales commissions Administrative salaries Insurance expense Advertising expenses Depreciation expense Operating income 0 0 S 0